In brief
- Delays to the U.S. Clarity Act and concerns over whale selling drove a $952 million outflow from digital asset investment products.
- The outflows were almost entirely from US-based products ($990M), with Ethereum leading at $555M and Bitcoin seeing $460M in redemptions.
- In a sign of selective demand, Solana and XRP investment products bucked the trend with inflows of $48.5M and $62.9M, respectively.
Digital asset investment products recorded their first weekly outflow in a month, with $952 million leaving the market amid delays to key U.S. crypto legislation, prolonging regulatory uncertainty.
Outflows were almost entirely concentrated in the United States, totaling $990 million, according to CoinShares’ Monday report. These were partially offset by modest inflows into Canadian and German crypto products of $46.2 million and $15.6 million, respectively.
CoinShares analysts attributed the shift to “delays in passing the U.S. Clarity Act, which has prolonged regulatory uncertainty for the asset class, alongside concerns over continued selling by whale investors.”
Ethereum-based products bore the brunt of the selling, experiencing $555 million in outflows. “This is understandable given it has the most to gain or lose from the Clarity Act,” the report noted. Bitcoin products saw $460 million in outflows.
The withdrawals mark a sharp reversal for U.S. funds.
Daily Bitcoin ETF netflows flipped negative after notching the third-largest inflow since October of $452 million last Wednesday, according to SoSoValue data.
The negative flows occurred against a backdrop of stagnant prices as investors and other participants head for the December holidays.
Bitcoin is currently trading around $90,000, according to CoinGecko data, but has struggled to hold above the key level for the past month.
Still, optimism remains high as users on prediction market Myriad, owned by Decrypt’s parent company Dastan, assigned a 68% chance that Bitcoin’s next move would take it to $100,000 rather than $69,000. That number has bounced by nearly 40% since December 1.
Selective altcoin demand
Amid the broad retreat, select altcoins saw continued demand.
Investment products for Solana and XRP bucked the trend with inflows of $48.5 million and $62.9 million, respectively, indicating selective investor support for assets with distinct regulatory or narrative drivers.
The weekly outflow now makes it “highly unlikely” that global crypto exchange-traded products will exceed last year’s total annual inflows, according to CoinShares. Total assets under management stand at $46.7 billion, down from $48.7 billion at the end of 2024.
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